Summary
Introduced with the Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill 2018 and Income Tax Rates Amendment (Sovereign Entities) Bill 2018, the bill amends the: Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to limit access to tax concessions for foreign investors by increasing the managed investment trust (MIT) withholding rate on fund payments that are attributable to non-concessional MIT income (including MIT cross staple arrangement income) to 30 per cent; Income Tax Assessment Act 1997 to modify the thin capitalisation rules to prevent double gearing structures; Income Tax Assessment Act 1936 to limit access to tax concessions for foreign investors by limiting the withholding tax exemption for superannuation funds for foreign residents; and Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to limit access to tax concessions for foreign investors by codifying and limiting the scope of the sovereign immunity tax exemption.